Spotify will potentially pay songwriters about $150 million less in U.S. mechanical royalties next year after bundling its plans with audiobooks.
When Bloomberg reported that Spotify would be upping the cost of its premium subscription from $9.99 to $10.99, and including 15 hours of audiobooks per month in the U.S., the change sounded like a win for songwriters and publishers. Higher subscription prices typically equate to a bump in U.S. mechanical royalties — but not this time.
By adding audiobooks into Spotify’s premium tier, the streaming service now claims it qualifies to pay a discounted “bundle” rate to songwriters for premium streams, given Spotify now has to pay licensing for both books and music from the same price tag — which will only be a dollar higher than when music was the only premium offering. Additionally, Spotify will reclassify its duo and family subscription plans as bundles as well.
Doesn’t make me feel guilty using Soulseek. Artists get next to nothing but I’m refusing to give any money to Spotify. If there was a better way to buy and own music digitally from popular artists I would
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Doesn’t make me feel guilty using Soulseek. Artists get next to nothing but I’m refusing to give any money to Spotify. If there was a better way to buy and own music digitally from popular artists I would